TWO Salford councillors and a housing chief have paid off rent arrears of hundreds of pounds after they were tipped off that the Manchester Evening News was on their trail.

We reported yesterday that a total of four councillors and the boss of a new council-owned housing organisation were in rent arrears.

Liberal Democrat Tim Perkins, who had been paying off his é600-plus debt at é60 a month, cleared it on Tuesday afternoon. Labour councillor and deputy mayor James Hulmes, whose debt was also é600-plus, paid a lump sum of é500 just before Christmas and cleared the remainder after the M.E.N. started to make inquiries.

The council is chasing a total of é4.7m in rent arrears throughout the borough. The M.E.N. was contacted by disenchanted town hall staff, who alleged they had been told by one boss not to pursue arrears owed by councillors.One of the four councillors, a Labour member, also owes a substantial amount but it is tied in with a housing benefit claim, which has not yet been resolved. If it is settled in his or her favour, the debt will be cancelled. Another of the four councillors is also in arrears, but the situation is connected with serious health problems.

Hilary Peat, chairman of the parent board the New Prospect Housing Limited, a council-owned organisation set up to maintain the city's 29,000 council houses, was also in arrears but is paying off the small amount this week.

Mrs Peat, who has been receiving benefit after suffering a stroke 18 years ago, said she owed one week's rent - é51 - and the situation was connected with a dispute on overpayment of benefits.

Coun Perkins has explained that he suffered financial problems after being unemployed for a period.

He lost his job as he was devoting so much time to council work. But he has since landed a new post working in a call centre dealing with emergencies for local authorities in southern England.

The council has strongly denied allegations by housing department staff that managers told them not to pursue certain councillors' rent arrears.

Leading Lib-Dem councillor Norman Owen rang the M.E.N. and said angrily: "I hope you are proud of what you have written. This story is a disgrace and is not justified.

"I am going to speak to the council's chief executive and demand he makes an investigation to identify your mole."